Boots may make it a bid race for SSL

HEALTH and beauty chain Boots has emerged as a surprise contender to buy Durex group SSL.

The High Street retailer is keen to expand its healthcare division, which includes brands such as Clearasil and Strepsils.

It is taking a close look at SSL, which owns Scholl footcare, Cuprofen painkiller and Resolve hangover remedy. SSL has already had one bid approach, believed to be from Reckitt Benckiser.

Boots chairman John McGrath, who is holding the tiller until new chief executive Richard Baker joins in September, is interested in SSL's consumer brands.

But he has yet to decide whether to launch a bid for the lot. SSL also owns a medical gloves and dressing division that Boots would need to offload.

Boots is wary of getting into a battle over price. Investec analyst Matthew McEachran believes it could squeeze considerable cost savings out of SSL, but says investors may be wary if it embarks on a large deal before Baker arrives.

SSL investors protested at yesterday's agm against a scheme to award chief executive Brian Buchan two years' pay if he loses his job.

Some 27% voted against or abstained in protest at the 'parachute', worth about £1m if SSL is taken over.